Veteran Legal Tech Executive Foresees New Era of Innovation and Consolidation

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HaystackID Editor’s Note: In this concise article, veteran legal technology executive Hal Brooks offers his insights into the transformational changes underway in the legal services sector. Speaking at the recent SOLID East conference, Brooks outlined the growth trends, investment drivers, and strategic imperatives that are accelerating consolidation and technological adoption. With cyber risks mounting, cybersecurity and data handling are emerging as top priorities in legal tech deals. Brooks expects continued innovation and integration of legal expertise with AI capabilities. As this new era unfolds, agility and client-centricity will define which firms thrive. For legal industry leaders, the mandate is clear: adapt or risk extinction.

By HaystackID Staff*

New York, NY – The legal technology and services sector is entering a transformational new era, according to industry veteran Hal Brooks. In an expert presentation at the recent SOLID East conference held in New York on September 12, 2023, the CEO of HaystackID offered his insights into the investment trends, market forces, and strategic imperatives currently shaping the competitive landscape.

Dry powder remains abundant among investors looking to capitalize on legal tech’s steady growth.

Hal Brooks, CEO of HaystackID

Speaking before a full-house audience of legal industry executives, investors, and professionals, Brooks charted the explosive growth and resilient demand driving increased deal activity. The global legal tech market has steadily expanded, surpassing $27 billion in 2021, and projected to reach nearly $36 billion by 2027. Brooks attributed this upward trajectory to the sector’s counter-cyclical nature: when economic times are good, demand rises as deals proliferate; when recessions hit, litigation and bankruptcies also increase as parties fight over shrinking resources.

This market profile helped spur a surge in investments and acquisitions during the pandemic, as historically low-interest rates made capital highly accessible. Since 2021, at least 200 deals have been completed across legal tech’s four primary segments: Enterprise Legal Management, Practice Management, Attorney Workflow, and Alternative Legal Services Providers (ALSPs). The resulting consolidation has positioned leading platforms to rapidly scale through strategic acquisitions of technologies, resources, and client bases.

However, macroeconomic headwinds have recently slowed deal activity. Between rising inflation, the war in Ukraine, and monetary policy tightening, market volatility increased in 2022. But Brooks noted that deal velocity is expected to rebound as debt markets stabilize. Dry powder remains abundant among investors looking to capitalize on legal tech’s steady growth.

Read the entire article here.

Assisted by GAI and LLM Technologies per EDRM GAI and LLM Policy.

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